Brasil Foods has booked a 75% drop in third-quarter profits as higher feed costs more than offset sales gains in the period.
The Brazilian meat company said net income fell to BRL91m (US$44m) in the three months, down from BRL365m in the comparable period of last year. EBITDA fell 22% to BRL565m.
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The company attributed the decline to a “significant” increase grain prices, which have been driven up by poor harvests, as well as the “world economic situation”. During the period, the cost of sales rose 20.9% as corn priced spiked 26%.
The bottom line was also hit by costs associated with the transfer of certain assets to Marfrig as part of its bid to win regulatory approval for the integration of Sadia and Perdigao.
Brasil Foods emphasised sales grew by 14.3% year-on-year, climbing to BRL7.2bn, boosted by a 26% increase in exports, new product development and price increases.
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